Wow, I think my phone just melted and my email took off for the moon. When we invite the community to get involved, people do just that.
In response to a flood of questions and speculation about what might happen with rates I have put together my very un- official summary of a very non- committed précis of how the City rates system works, how land valuation is achieved and how this affects land- owners. I am not expert in this area but do listen to people who are.
In summary, rates are based on Gross Rental Value. This in turn depends on what choices you make about what you do with your land and about how much rent people would pay for that development.
1. The City will not be changing its rates calculation model - so the rates will always be calculated as the GRV assigned by the Valuer General's Office to each property in the area multiplied by the Rate in the $ applied by Council to EVERY property in the City (that is the City will not be levying any differential or special area rate on properties in the Canning Bridge Precinct)
2. The only variable then that could affect rates in the Canning Bridge Precinct would be a movement in the GRV - provided by the VGO - not us. This reflects local development and the State and National economy.
3. One would assume that the primary impacts of the implementation of the Canning Bridge Precinct study would be that there will be an increase in density and some subdivision of lots. Some properties will obviously remain as they are should the owners not wish to participate in the opportunities provided by the implementation of the recommendations of the CBP study
4. Given that, it is likely that there would be a modest aggregate increase in the total rates yield from the overall area (from those properties that are either subdivided or on which new construction occurs.)
5. The newly created properties or new construction are likely to be assessed as having a slightly higher GRV than existing properties - but this is not an automatic outcome! Subdivision would also increase the number of lots - so would therefore increase total rates yield - not necessarily individual rates. Note, this is only if you sub- divide.
6. It is unlikely that rates for those properties that the owners chose to keep as they are, rather than take development opportunities, are likely to change very much if at all - because the properties will in fact remain exactly the same in terms of individual amenity and rental return generating capacity. Owners would actually have to 'do something' for a major change in GRV to occur.
7. The next GRV revaluation is not due until July 2011 - and irrespective of developments at Canning Bridge, that revaluation will reflect the Valuer General's assessments of likely rental return (which given expected economic conditions in the WA economy could see GRVs increase across the board in WA although not by huge amounts). GRV of any property reflects the VGO assessment of rental returns - that is, it is driven by matters generally not connected with Canning Bridge.
In summary, if you choose not to develop your property then the rates are unlikely to change significantly. It is also worth noting that it takes considerable time to change the density coding for a new Town Plan and even longer for development to actually happen. I expect that the full development might take as long as twenty years.
Please recognise however that this is just a summary of a logical thought process given current knowledge. I really can not in good conscience give any guarantees of what will happen because the 'variable' (GRVs) is not one that is within the City's control.
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